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America’s startups are changing what it means to own a company (economist.com)
52 points by Futurebot on Oct 24, 2015 | hide | past | favorite | 3 comments


I nodded when the article talked about 401k investors and corporate management being strung together with a complex web of middlemen with expensive fees and questionable motivation.

But I started scratching my head when the solution was a web of contracts/repurchase agreements/etc, most of which are secret and poorly understood was presented as the solution.

Let's be real. 80% of this new stuff is there to avoid post Enron regulation, period.


"Investors, founders, managers and, often, employees have stakes that are delineated by carefully drawn contracts, rather than shares of the sort that trade on exchanges."

The article doesn't go into more detail about this. What is an example of these carefully drawn contracts? Convertible notes? Something else?


I guess it refers to shareholders' agreements and stock purchase agreements?




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